Indo-Pacific ‘more contested, less predictable’, says NZ PM

Prime Minister Chris Hipkins made the comments at the China Business Summit 2023 held at Cordis, Auckland on 17 July.

He also announced the upcoming release of New Zealand’s first National Security Strategy as well as the release of an interrelated set of strategic policy documents spanning national security, defence, and foreign policy.

The meeting was attended by the PM, NZ Trade and Export Growth Minister Damien O’Connor, Chinese Ambassador to NZ Wang Xiaolong, NZ-based chief executive officers, and a number of international speakers including Raymond Yeung, ANZ’s chief economist, Greater China, and Andrew Tan, former managing director of Temasek International.

“The longer I’ve been in the role, the more I’ve seen first-hand the enormous benefits of our independent foreign policy, our role as an honest broker, and the importance of our close relationships in enhancing our prosperity and security,” PM Hipkins said.

New Zealand holds a prominent trading relationship with the People’s Republic of China under a 2008 Free Trade Agreement which provides two-way trade worth around $40 billion.

The PRC represents a market of around 1.4 billion customers for around $20 billion worth of New Zealand’s goods every year. It’s currently New Zealand’s third largest market by value for services exports and worth $1.2 billion per annum.

“China’s economic growth has brought about a remarkable transformation of its society in the last 40 years,” PM Hipkins said.

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“In this time, 800 million people have been lifted out of poverty in China and, as it has been for many countries around the world, China’s rapid growth has also been a driver of New Zealand’s own prosperity. Where they have gained, so have we.

“As China’s economic influence has grown, the Chinese government has also become more assertive in its foreign policy. China has ‘stood up’ and is now asserting its interests globally.

“It’s normal for states to pursue their interests and to use all the tools at their disposal to exert influence regionally and internationally.

“But as I’ve noted recently, China’s rise and how it seeks to exert that influence is also a major driver of the increasing strategic competition, particularly in our wider home region, the Indo-Pacific.

“Our region is becoming more contested, less predictable, and less secure.

“And that poses challenges for small countries like New Zealand that are reliant on the stability and predictability of international rules for our prosperity and security.

“New Zealand is concerned about a worsening strategic environment and rising tensions in the Indo-Pacific region, in particular in places like the South China Sea and Taiwan Strait.

“We have direct interests in these areas and are therefore focused on the need for tensions to be carefully managed and de-escalated in the wider interests of the region.”

Prime Minister Hipkins also took the chance to reaffirm New Zealand’s commitment to a one China policy, face-to-face engagement, and the continuation of meetings between NZ and Chinese leadership.

He proposed three key principles to guide that diplomacy including continued cooperation with China where interests converge; acting to preserve, protect and promote national interests and values; and working with partners to advocate approaches that reflect NZ values.

New Zealand shares a respect for human rights, democracy, the rule of law, environmentalism, disarmament and a stable, resilient Pacific alongside likeminded partners in Australia, the United States, the United Kingdom, the European Union, Japan, Malaysia, the Philippines, and Vietnam.

“As with any complex relationship, there are areas where we cooperate to advance our shared interests, and areas where we disagree,” he said.

“It’s how we deal with differences that is important, and this will not always be easy.

“For our part, we will seek to manage these with the respect, care, and responsibility they deserve, and in line with a clear sense of our national interest and values. That’s the New Zealand way.”

People’s Republic of China Foreign Ministry spokesperson Mao Ning said the country is working with New Zealand to enhance dialogue and exchanges, while confirming Taiwan as China’s internal affair.

“China is a member of the Asia-Pacific. We have always worked with other countries in the region to practice true multilateralism and safeguard peace and stability in the region,” she said during a regular press conference on 17 July.

“We would like to enhance dialogue and exchanges on the basis of mutual respect with New Zealand and other countries, and jointly play our part to uphold stability and prosperity in the region.”

“To ensure peace and stability in the Taiwan Strait, the most important and crucial thing is to uphold the one-China principle.

“The South China Sea has been generally stable. We hope relevant countries will respect regional countries’ effort to uphold peace and stability in the South China Sea.”

During the China Business Summit 2023, PM Hipkins also addressed the ongoing Ukraine War, in which New Zealand has sent more than $78 million of financial and military support for military and humanitarian support.

“Russia’s aggression and illegal invasion of Ukraine is a blatant disregard of the UN Charter and an affront to the international order,” he said.

“Its illegal war has affected global supply chains, causing significant food and energy insecurity for those most in need.

“In New Zealand, we have seen high inflation, high cost of living; these are economic concerns that many countries are grappling with. If we collectively act for peace, we can also return economic stability.

“During my recent visit to Beijing, I encouraged China to play a constructive role by using its access and influence with Russia to seek a peaceful solution to the conflict. New Zealand stands in firm solidarity with the people of Ukraine.”